Pest Analysis For South Korea Essays

Pest Analysis For South Korea Essays-62
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E – Economic The economy of a place can affect the demand and supply rates of a product or service in a locality and their prices.

This includes interest rates, unemployment rates, economic stability, earnings of potential customers.

An organization can control its internal environment, however, controlling its external environment is not easy.

With PESTEL Analysis the management can get a better idea of how the external factors can affect the company's development The PESTEL Analysis allows a company to understand all the macro environmental factors can affect growth, customer engagement, business and marketing environments.

As the name suggests, the PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal Analysis which is a tool used by startups or organizations that are willing to establish their services in a new market or a new location to analyze these macro environmental factors.

For instance, it can help a company determine how the political circumstances of a place can affect its consumers, how sustainable are a company's products or how the attitude of the customers can affect the sales.

L – Legal Unlike the political factors, the legal environment focuses on detailed laws of a place that can affect a company such as copyright laws, employment laws, and discrimination laws.

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S – Social The social factors include the belief system of a locality, attitude of the customers towards their growth, health, and career.

These factors can help in deciding with the type of customers to chose for a particular product.

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